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Mortgage California Blog

Mortgage News Roundup

June 26th, 2014

Mortgage News Roundup

Mortgage interest rates are slowly ticking downwards, and sales of homes in certain areas are surging forwards. If you’re wondering if now is the time to either refinance or buy, contact a professional loan officer. They’ll be able to look at where you’re at, what mortgage options would be best for you, and help you start the documentation process.

End in sight for millennials struggling to get on property ladder

Young Americans who can’t afford a mortgage are holding back the housing recovery, with combined new and existing home sales this year set to drop for the first time since 2010, according to a June forecast by the Mortgage Bankers Association. Last year, about 22 percent of 30-year-olds who had student debt also had home loans, down from almost 34 percent in 2008, according to the Federal Reserve Bank of New York.

The good news is that the end of this struggle is in sight within the next two to five years. won’t be long-term. Millennials will gain greater access to housing, lifted by higher levels of education and a stronger labor market, according to interviews with about a dozen economists and housing analysts.

“Given the Great Recession and the slow recovery, millennials have faced very difficult economic circumstances,” said Richard Fry, a senior economist at the Pew Research Center in Washington. “But they have a very significant tailwind. They are more educated than any generation before them. All of those college degrees will sooner or later pay dividends and they will buy homes.”